163Repayment of amounts owing because of cancelled membership

163 Repayment of amounts owing because of cancelled membership

163 Repayment of amounts owing because of cancelled membership

(1) If the membership of a member of a co-operative is cancelled under this Part, the co-operative must, within one year after the date of cancellation—

(a) repay to the former member the amount owing to the member because of the cancellation; or

(b) apply the amount under subsection (2) if—

(i) the board considers repayment would adversely affect the financial position of the co-operative; or

(ii) the board and the former member so agree.

(2) The amount payable may be applied as follows—

(a) if the co-operative is a deposit-taking co-operative—the co-operative may apply the amount as a deposit by the former member with the co-operative (subject to the requirements of section 164 as to interest on the deposit);

(b) the co-operative may allot or issue debentures or CCUs of the co-operative to the former member in satisfaction of the amount;

(c) the co-operative may appropriate the amount as a donation to the co-operative, but only if the former member consents in writing to the donation.

(3) The amount payable to a former member because of the cancellation of membership includes any amount paid up for shares forfeited because of the cancellation of membership.

(4) If the former member is subsequently readmitted to membership, any amount held by the co-operative under this section must, if the member asks, be applied towards the cost of readmission to membership (including any subscription for share capital).

(5) The co-operative may retain the amount otherwise payable to a former member under this section, if—

(a) the former member cannot be found by the co-operative, after reasonable efforts by the co-operative to find the former member; and

(b) the amount is less than $100 (or any other amount prescribed by the National Regulations).